Uday Kotak takes veiled dig at VIL after telco’s decision to allot preferential shares to vendors

PTI | June 15, 2024 | 08:48 AM IST | Breaking News | Follow on Google News

Uday Kotak takes veiled dig at VIL after telco’s decision to allot preferential shares to vendors

Uday Kotak takes veiled dig at VIL after telco’s decision to allot preferential shares to vendors

NEW DELHI: A day after Vodafone Idea announced that Rs 2,458 crore preferential equity will be allotted to vendors Ericsson and Nokia towards part payment of dues, noted banker Uday Kotak on Friday took a swipe at the mechanism of issuing “equity to creditors to repay their debt”.

Without naming Vodafone Idea, Kotak in a post on X (formerly Twitter) wrote “Financial markets create money out of thin air?”

“A model for companies in financial difficulty: issue equity to creditors to repay their debt. If the stock is well traded, the creditor can sell in the market and get paid by investors,” he posted.

PTI